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Stepmother is trustee and sole beneficiary of father's irrevocable trust til she dies. What is her fiduciary resp. to heirs?

As the sole beneficiary til her death, does the trustee have any responsibility to manage the trust in a way that benefits the future heirs? There is a QTIP in which a decedent's trust will merge with spousal trust, and my father told me the decedents trust should grow so that there is enough to pay taxes on estate (mostly real estate which cannot be bought or sold without co-trustee's signatures - otherwise, co-trustees have no power.)
We believe she is not managing decedents trust properly, she is taking income from it, so it is not growing.
She has gone into assisted living facility, refuses to communicate, and appears to be very paranoid. Pretends not to know who I am when I call. Her daughter is managing trust business, although my sister is next in line as trustee. What can we do?

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The trustee is required to manage trust property "fairly" with respect to all of the beneficiaries (both herself as the "lifetime" beneficiary and the children as the "remainder" beneficiaries). Unless the trust permits the trustee to delegate her duties, the daughter has no authority to manage the trust on the trustee's behalf. If you believe that the trustee is unable to continue managing the trust, then you need to ask her to resign. If she refuses, you might need to ask a judge to force her to resign (by filing a petition in the probate court asking for her resignation).

Obviously, that could get ugly, so think carefully before you decide to do it.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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